FSS probes hiring irregularities at Hana Financial Group

FSS probes hiring irregularities at Hana Financial Group

Minister of the Office for Government Policy Coordination Hong Nam-ki and FSC Chairman Choi Jong-ku

The Financial Supervisory Service (FSS) on Tuesday began a special inspection into the practice of nepotism in hiring at Hana Financial Group and its subsidiary Hana Bank that already cost the job of the financial watchdog’s chief.

FSS head Choe Heung-sik on Monday resigned on suspicion that he played a role in the recruitment of a son of his acquaintance while sitting as the president of Hana Financial Group in 2013.

Shares of Hana Financial Group closed Wednesday down 1.59 percent at 46,400 won ($43.58) apiece in Seoul trading.

The inspection team headed by FSS Deputy Governor Choi Seong-il will go on until April 2 but can be extended when needed.

“We are not setting a time limit in uncovering hiring irregularities,” said Choi Jong-ku, chairman of top financial policy-making Financial Services Commission, during a state affairs committee meeting held at the National Assembly on Tuesday.

The special in-house counsel team with nearly 20 inspectors, the largest ever for an examination on a single financial institution, includes IT specialists who will look into all computer systems and cloud servers.

The inspection will start with allegation around Choe, who denied any wrongdoing but nevertheless offered to resign. The FSS will hand over the findings to the prosecution.

Probe on favoritism in hiring that has been a part of the campaign led by the liberal government to root out past wrongdoings and bad traditions expanded from public establishments to financial institutions at a time when the jobless rate for the young has been at the worst. Woori Bank CEO had to step down under the same allegation.